By the Unified Savers Editorial Team
IHSS funding changes occur at the federal, state, and county level. This article reflects information available as of June 2026. Contact your county IHSS social worker or SEIU 2015 at 1-877-734-8673 if you have questions about your authorized hours.
Federal Medicaid restructuring enacted in late 2025 is forcing California to absorb hundreds of millions of dollars in reduced federal matching funds — and advocates warn the shortfall could translate directly into reductions in authorized IHSS hours for the state’s approximately 700,000 care recipients, many of whom are elderly and disabled adults who depend on home care to stay out of nursing facilities.
What Changed in Federal Medicaid Funding
The federal government funds IHSS through Medicaid (Medi-Cal in California) via a Federal Medical Assistance Percentage (FMAP) match. California currently receives roughly $0.50 in federal dollars for every $1 spent on IHSS services. Under restructuring provisions in the federal budget legislation passed in late 2025, California faces a combination of lower FMAP rates and new per-capita spending caps on certain Medicaid categories.
California’s Department of Health Care Services estimates the state will absorb an annual reduction of approximately $800 million in federal Medicaid matching funds across all Medi-Cal programs, with IHSS personal care services among the most directly affected categories. The California Legislative Analyst’s Office has identified IHSS as a high-risk program given that its costs are driven by individual authorized hour determinations, which are difficult to cut without directly harming recipients.
How This Could Affect Recipients’ Authorized Hours
Under California’s current IHSS model, authorized hours are set through individualized social worker assessments based on recipient need. Hours cannot legally be reduced without reassessment — but state budget pressure creates several indirect pathways through which recipients may see their hours affected.
Reassessment timing: The state could increase the frequency of IHSS reassessments, and counties under budget pressure may instruct social workers to reassess functional limitations more narrowly. Advocates at Disability Rights California have already flagged concerns about inconsistent reassessment practices in Alameda, San Bernardino, and Sacramento Counties.
Overtime cap enforcement: Some counties are more aggressively enforcing the provider overtime cap at 66 hours per workweek, which can effectively limit care hours when recipients with high needs rely on a single provider working near that threshold.
New hours for new recipients: Advocates expect that initial authorization levels for newly enrolled recipients may be reduced in counties facing budget constraints, with “re-up” reassessments required sooner.
California’s Response: Backfill or Cut?
Governor Newsom’s revised 2026–27 budget proposes a combination of state General Fund backfill and a temporary reduction in the IHSS county maintenance-of-effort obligation to offset federal shortfalls. However, consumer advocates and SEIU 2015 argue that the state’s proposed backfill is $200 million short of what’s needed to maintain current service levels.
The California Legislature’s budget conference committee was still negotiating IHSS funding language as of late June 2026. The final budget must be signed by July 15.
Assembly Member Wendy Carrillo (D-Los Angeles) introduced a budget amendment in May 2026 to add $175 million in General Fund support specifically for IHSS personal care services, citing the program’s role in keeping 700,000 Californians out of more expensive institutional care settings.
What Recipients and Providers Should Do Now
If you receive IHSS services or provide care, there are concrete steps to protect hours through this period.
For recipients: If you receive a notice of reassessment, do not waive your right to appeal. An IHSS reassessment that results in reduced hours can be appealed through a state fair hearing. Contact Disability Rights California at 1-800-776-5746 for free legal assistance with appeals.
For providers: Reduced recipient hours mean reduced provider paychecks. If your recipient’s hours are cut, contact SEIU 2015 to understand your options, which may include supporting your recipient’s appeal or, if hours drop below the threshold for health insurance eligibility, transitioning to SEIU’s COBRA-equivalent plan.
Both groups should contact their state legislators. The IHSS budget line is one where constituent contact meaningfully influences final decisions. SEIU 2015 has a call tool at seiu2015.org that routes calls directly to the appropriate Assembly member and State Senator for your zip code.
The budget fight over IHSS funding reflects a broader national reckoning over the cost of home-based care versus institutional care. California has long led the nation in the share of Medicaid long-term care dollars directed to home and community-based services — a direction that saves money and preserves dignity. Federal restructuring threatens to reverse that progress.
Additional Resources on Unified Savers:
- IHSS Eligibility Requirements California — Who qualifies for IHSS services
- IHSS Caregiver Rights California — Provider rights and protections
- IHSS Union Benefits SEIU 2015 — SEIU 2015 member resources